Average family has no idea how new tax law will impact them, study concludes

We’re in the middle of tax season, but plenty of families are still uncertain what the new tax law will mean for them.

polled in a study by Haven Life said that they had no clue how the Tax Cuts and Jobs Act — the tax overhaul that took effect last year — would affect their 2018 taxes.

Haven Life surveyed 550 consumers with kids under age 17 from January 31 to February 4.

“There are a lot of moving pieces,” said Cathy Derus, a CPA at Brightwater Accounting, of the new laws.

Here’s what families need to know about the tax law this filing season.

Key changes from the new tax law include a higher standard deduction — $12,000 for singles and $24,000 for married couples filing jointly — as well as the loss of personal exemptions and limitations on itemized deductions.

If you withhold too much in taxes, you’ll get large refund next year, but your paycheck will be smaller.

Withhold less and you’ll get more money in your paycheck now, but you’ll end up with a smaller refund next spring. If you withhold too little, you might owe the IRS.

Another way to curb your tax bill next year is to consider raising your 401(k) plan contribution, Derus said. Your deferrals at work reduce the amount of your wages that are subject to federal income tax.